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[Reporter s Notebook] Macquarie can learn lessons from Mirae Asset, Hahn & Co

Dairy company s failure

Dairy company s failure Namyang lost consumers trust due to its owners mismanagement Namyang Dairy Products owner-run management of the past 57 years has come to an end. Faced with deepening consumer distrust in the wake of the so-called Bulgaris scandal, the family that owns and manages Namyang has thrown in the towel. It is the first case of a founding family having to give up management and ownership simultaneously, after being shunned by consumers. The incident is a warning to other family-run companies ― called chaebol ― that they might face a similar fate unless they run their companies in accordance with laws and ethics.

Hahn & Company to take over embattled Namyang Dairy for ₩310 7 billion

The company put up stakes for sale Hahn & Company, the South Korean private equity investment firm specializing in buyouts and corporate restructurings, will be buying the combined 378,938 common shares that are owned by the company’s former chairman, Hong Won Sik, his wife, and his grandson. The Korea Herald reported that Namyang Dairy Product’s board agreed to put these stakes up for sale. The acquisition of the Namyang stakes came to light through the disclosure that was filed to the Financial Supervisory Service. It was further stated in the filing that although most of the family members in the Hong clan have already stepped down from the company’s high positions, Hong Won Sik’s brother, Hong Myeong Sik, will remain a minority shareholder.

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